For Release — July 7, 2010
Business Council says new taxes, fees and other costs in budget will harm economy
ALBANY— “New York taxpayers will be forking over more than $2 billion in new taxes, fees, assessments and other revenue raisers if the Senate returns and approves its revenue bill and other pending legislation,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc. “That is a far cry from the Senate Democrats' promise of no new taxes in their earlier budget resolution.”
That is the finding of an analysis of the budget passed by the Assembly and awaiting Senate approval by the Public Policy Institute, the research arm of The Business Council.
"This is an anti-growth, anti-jobs budget. It appears Albany has little interest in economic recovery and job creation. You can't impose new taxes and fees on businesses, cut economic development programs, renege on promised investment incentives, and then hope that businesses will respond by creating jobs," added Adams.
Among the most damaging tax increases is the deferral of business tax credits that will raise the tax bill on many companies by $200 million this year and by more than $1 billion when fully implemented.
“These are tax credits that were earned by businesses in New York for creating jobs, making investments and cleaning up brownfields. Many important projects are financed based on the timely payment of these credits by the state. Now Albany is failing to honor its commitment. This will this harm these projects and businesses in the short term, and destroy New York's credibility when it comes to providing economic development incentives in the future,” said Adams.